Last week, last few trading days displayed some interest in buying with the breaking of the recent high (1,231 pt) but it was not strong enough for a sustainable break away. As said in my previous blogpost, my best target for now is 1,250 pt, not that far from the last KLCI losing (1,233 pt). See KLSE Composite Index Daily chart on the right.No difference anyway, the important point is that the market does seem exhausted and any up-climbing will make it more exhausted. It need new money getting in to make it climb higher. Not much to expect, except the market will display more weakness in the coming weeks. Not that previous weeks were exciting but it's going to be more dull weeks.
I don't have anything new to say on longer term view. I will sound like repeating myself. I suppose even big player need to allow the market to correct more before another round of buying spree. Especially when there is no other big player around. The correction is needed for the main up trend (since early this year) then only we have a new main bullish trend to emerge. Not just in term of technical, but that also will push down e.g. stocks' P/E ratio and should attract more participants and hopefully foreign players, this time. Add the fact the Ringgit on the low side, it shall be 'killing two birds with one stone opportunity' for them.
This month, Malaysia Budget 2010 shall be tabled on 23rd October 2009. As usual, the market will be quiet a week prior to that because it anxious of what will the budget will be. Then it will be quiet or down for another week after that, it either because it not as what they hope it will be or because it just what they already expected. Save only for when there are nice surprises.
Also, many are anxiously waiting to see how October going to end. Many of them liken the current global economic crisis to the 1929 Great Depression. In that year, on October 28th and 29th (Black Tuesday), DJIA plunged 29%. When DJIA plunged 23% within two days, the result was, as you know, a jump in suicides rates. To comfort you, since 1998, October is actually one of the best months for DJIA. The 1929 was kind of started in October 1929 and what we are having now is already about two years passed through. Also, if stock player already expect it then it will not happen because they already been in selling mode long prior to that.
